40 years ago, Singapore was confronted with severe unemployment, poor infrastructure, and a housing shortage. Today, the city-state has taken its place among the newly industrializing countries in Asia.
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Key FindingsThe City of Ulaanbaatar (UB) is undergoing a historic transformation toward market-driven urban development. This growth remains strongly influenced by city policy decisions that affect th... Show More +e supply and location of land for public and private uses.The current city administration clearly recognizes that urban land represents one of the most important assets under its guardianship and management.However, such reforms are incomplete, and the city administration’s efforts are constrained by existing national laws and regulations and conflicting perceptions about land as a designated public entitlement for residential use.Low-density urban expansion and lack of infrastructure combine to reduce residents’ quality of life and the city’s overall economic competitiveness.The city’s street system and land use plan, not population density, contributes to traffic congestion.Urban planning regulations and approaches are outdated and contribute to sprawl and land market distortions.Current laws and practices on land change frequently, which results in uncertainty for developers and inefficiencies in administration.Land administration systems need to be more efficient and transparent.Management of government land in UB has not yet reached its full potential, technically or strategically, despite steady progress.UB forgoes significant public revenues that could be derived from private investment in land due to the current weaknesses in land administration and management.Land fee and tax policies along with land allocation practices provide little revenue because they do not reflect the market value of land and property.UB should take a proactive approach to improve the function of land markets and its own land management and to capture a fair share of land market value. Immediate Actions UB City Can TakeFinalize the surveying and registration of publicly owned land. Conduct legal documentation and on-the-ground audits of land held by all city government entities, including budgetary organizations and municipal enterprises, as well as land allocated for possession to individuals, NGOs, and similar enterprises.Create an interdepartmental Task Force (including representatives from districts) to develop a comprehensive, city-wide land management policy. The plan would be used to guide decisions on retaining or releasing public lands using the completed inventory of publicly owned land and properties and a consideration of public need. Should public lands be released for private activities, a system of competitive and transparent land auctions would allow the city to capture higher revenues than through direct allocation.Review zoning and development standards in order to allow more flexibility in accommodating demands for different land uses and to increase the areas that allow for mixed land uses. Land use regulations should be used as a means to encourage density levels that make the provision of infrastructure more affordable through the efficient use of urban land, rather than supporting development through allocating vacant land in fringe areas or satellite towns far from infrastructure and services.City agencies responsible for developing both land use plans and public transportation planning need to closely coordinate ongoing activities and partner with ongoing street improvement projects aimed at enhancing capacity and connectivity.Actions That Need Involvement of Others StakeholdersThe city needs to lead efforts to improve the efficiency and transparency of land administration services, including titling and registration. However, since titling and registration procedures involve national government ministries, the city needs to partner with these organizations to establish a set of activities to improve the quality of these services to city residents. A review of existing procedures and requirements could help to identify steps that could be consolidated or eliminated. Public outreach and information campaigns would clarify the benefits of titling and registration and the associated requirements.The practice of land valuation needs to be revised so that taxes and fees better reflect market values of land and property, as is international practice. This will require significant changes in current laws and the city will have to cultivate long-term strategic partnerships with other government ministries and parliament in order to develop and support these reforms.Current land tenure classifications should be consolidated to improve clarity and support for investment. For residential uses, possession is an unnecessary category that could be discontinued and replaced by directly issuing an ownership tenure designation. Legal entities should also enjoy some form of secure, medium-term rights or long-term land leases rather than the more circumscribed possession and user rights they are currently afforded. Show Less -

Key findings:Lao PDR has enjoyed real annual GDP growth averaging over 7% in the last two decades, mostly on the development of natural resource based industries. The contribution of resource industri... Show More +es has grown significantly over this period, a trend that is expected to continue.However, the country’s rapid growth has masked the costs of a still largely unreformed business enabling environment. Significant aspects of the investment climate remain characterized by not enough transparency and predictability for investors.The Enterprise Survey shows that inadequate workforce skills has emerged as the top constraint to private sector expansion – almost 20% of firms surveyed said that this was a serious constraint. Corruption and crime ranked second and third respectively, with about 15% ranking each as a major constraint. About 13% of firms reported that electricity, trade regulations and tax rates were serious problems.Firms in Lao PDR stand out from those in neighboring countries in one important area: they are far more likely to complain that not enough workers are applying for jobs, even the low-skilled jobs. The key problem is that the jobs on offer are not sufficiently attractive, in terms of the wages and working conditions being offered, to attract migrants out of subsistence agriculture.Productivity is estimated to be about half what would be expected for a country at this level of development. There has been almost no observable growth in labor productivity during the last decade. In addition, labor costs per worker which include wages, salaries and bonuses have experienced a 70% increase between 2009 and 2012, but without growth in productivity.Policy makers in Lao PDR face two different options. Business as usual which continues the current principally natural resource extraction model, with limited growth in diversified sectors and a focus on “megaprojects.” Or, an alternative approach to reform the business enabling environment by improving transparency and predictability. This new approach will require the following policy actions:Greater efforts to streamline and simplify transactions costs.A public commitment to transparency in all aspects with which the state engages with the private sector.Much fuller commitment to the establishment of a rule-of-law state.Greater certainty and consistency with the way that the private sector is taxed.Increased incentives for firm-level investment in education and skills.Accept that significant skills gaps will remain in the private sector for the considerable future, and ensure that gaps can be filled quickly and efficiently with imported skills.Deeper investments in backbone infrastructure and services for competitiveness, but on an affordable basis.Modernize the financial sector as a key support base for private sector development.Ensure macroeconomic stability as a prerequisite for broad based job creation and private sector development. Show Less -

An additional 96,000 young people will be looking for jobs every year in the coming decades. Having more potential workers presents an opportunity for growth, but only if productive, income-generating... Show More + jobs are available.While the government has focused on the role of education in skills development, the Lao PDR Development Report aims to identify what needs to be done to create more and better jobs for Lao PDR’s growing population.Key findingsLao PDR’s economy is growing fast but growth is mainly driven by the hydro and mining sectors where very few jobs are created: only 22,000 people work in these sectors and this number is unlikely to increase much, given how capital intensive those sectors are.Currently, most of the jobs that are available in Lao PDR are not very attractive: productivity and growth remains very low, and this implies relatively low wages, and relatively slow growth in those wages.The underlying problem is that a difficult business environment keeps foreign and domestic private investments away. Unless this problem is addressed, it is unlikely that the economy in Lao PDR will be able to provide attractive job opportunities to the 96,000 young people entering the labor market each year.Large proportions of the workforce are trapped in lower-productivity farming jobs: 7 in 10 Lao workers are employed in the agriculture sector. This implies that a very large number of workers is needed, each producing very little and making only a meager living.To take advantage of better jobs, young people need better foundational skills – the reading skills of adults in Lao PDR lag behind adults in neighboring countries. An Early Grade Reading Assessment showed that over 30% of 2nd graders could not read a single word, and among those who could read, 57% did not understand what they had just read.RecommendationsBoosting agricultural productivity is a top priority to raise farm incomes, lower the need for labor in the agricultural sector, and eventually free agricultural workers to move out of farming to higher-productive, higher-paying sectors with more growth prospects. This includes:Facilitating trade in paddy and rice to encourage private investment in milling that will reduce milling costs and give farmers greater incentive to increase production for export.Making better use of public resources supporting rice farmers, such as technology development and irrigation.The Lao economy will need to generate more off-farm jobs to absorb these new workers coming into the economy. The essential first step is creating an environment conducive for farm and non-farm businesses to make investments and grow. In particular, action is needed on three fronts:Streamlining and simplifying business compliance and transaction costs associated with dealing with government to create a more business-friendly environment.Improving transparency in the provision of public sector services to business through measures such as publication of all fee schedules, permits, and licensing requirements.Establishing a more predictable playing field for the private sector, with consistent implementation of publicly available legislation, rules, and regulations and with reduced bureaucratic discretion.For workers to take up the higher-productivity opportunities that become available, priority must be placed on ensuring basic literacy skills. Reforms must focus on:Expanding and strengthening early childhood education to help develop school readiness skills, basic cognitive and behavioral skills.Making sure all children can read by the end of grade 2 to build a skilled and productive workforce.Building job-relevant technical skills with the Government more strategically focused on developing policies, setting standards, investing in training materials and instructors, improving public information about training systems, and carrying out training evaluations. Show Less -

January 26, 2015Key FindingsAlmost 200 million people moved to urban areas in East Asia from 2000-2010, a figure that would be the world’s sixth-largest population for any single country.Most of East ... Show More +Asia’s population is still non-urban, meaning the region will likely face decades of further urbanization.The Pearl River Delta in China – which includes the cities of Guangzhou, Shenzhen, Foshan and Dongguan – has overtaken Tokyo as the world’s largest urban area in both size and population, with more inhabitants than countries such as Argentina, Australia or Canada.China’s government-implemented urbanization dominates East Asia with 600 of the region’s 869 urban areas located in the country, which also has more than two-thirds of East Asia’s total urban land.East Asia’s urban areas included eight “megacities” with populations over 10 million, 123 large cities with one to 10 million people, and 738 medium and small cities with 100,000 to one million people.The report establishes a direct link between urbanization and income growth, showing how economic output per capita increased throughout the region as the percentage of people living in urban areas went up.Expanding urban areas often cross administrative or political boundaries such as municipal borders, which fragments government management and revenue sources.The rate at which urban areas expanded physically varied widely between countries. Mostly rural countries had the highest spatial expansion rates, with Lao PDR at 7.3 percent and Cambodia at 4.3 percent, while industrialized Japan had the lowest rate of increase at 0.4 percent despite containing the second-largest amount of urban land behind China. Show Less -

Report Highlights • Economic growth slowed down to 5.3 percent in the third quarter of 2014, due to weak government spending on the demand side and agricultural production on the supply side.• Go... Show More +vernment consumption contracted by 2.6 percent while infrastructure spending fell by 6.2 percent. Contributing to weak government spending are the Supreme Court decision which found some provisions of the Disbursement Acceleration Program unconstitutional, budget execution bottlenecks, and slow disbursement for Typhoon Yolanda reconstruction.• Despite the slowdown, more than a million jobs were created in October 2014, although the quality of jobs remains a challenge. The 2013 Annual Poverty Indicator Survey (APIS) finds that real income of the bottom 20 percent grew much faster than the rest of the population. The survey also confirms that the government’s conditional cash transfer program is reaching the poor, as reflected in the substantial growth of domestic cash transfers to the bottom 20 percent.• Lower government spending, investment delays and slowdown, and weaker exports are likely to limit economic growth to 6 percent in 2014 and 6.5 percent in 2015. Provided that government can fully commit to utilizing the budget as planned, as well as accelerating reforms, achieving growth of above 6.5 percent can be achieved.• Translating higher growth into inclusive growth can help the government achieve its poverty target of 18 to 20 percent by 2016. • Eradicating poverty requires a commitment to implement key reforms in the areas of infrastructure, health and education; enhancing competition to level the playing field; simplifying regulations to promote job creation; and protecting property rights.• Higher investments need to be supported by tax policy reforms as tax administration reforms are inadequate to fully fund the investment gap. Worsening port and road congestion and possible power shortages in 2015 underscore the need to urgently raise investments. • Tax policy reform should aim for a more equitable, efficient and simpler tax system.• Reforms to strengthen tax administration and improve the transparency and accountability of government are essential to make it a success. Key reforms include the passage of the Freedom of Information bill, which institutionalizes open data, enhancing budget reporting, and simplifying tax procedures and processes.• Higher investments in infrastructure, health, and education need to be complemented by reforms to enhance competition. Essential reforms include crafting and implementing a clear competition policy, liberalizing key sectors of the economy to directly benefit poor Filipinos, and opening up the economy to more foreign competition. Special focus sections:* Congestion in Metro Manila and its impact on the economy* Potential power shortages in Luzon and the way forward* Reviving Philippine electronics exports* Liberalizing rice policy in the Philippines* Enhancing competition in the domestic shipping industry Show Less -

Key Findings Malaysia is projected to grow more slowly in 2015.Growth projections: 5.7% in 2014; 4.7% in 2015. Slowdown in China and uneven global recovery will dampen export growth.Fiscal consol... Show More +idation is on track and current account to stay in surplus, but risks to both if oil prices fall further.Malaysia has reduced poverty and vulnerability; inequality is still a challenge.Absolute poverty has nearly been eradicated.Vulnerability is limited and declining.However, inequality is still high compared to OECD countries (Gini = 0.42 in 2014).Some gaps between ethnic groups remain, but inequality within groups explains most (96 percent) of overall income inequality.Growing the middle class will promote shared prosperity in Malaysia.The challenge is for Malaysia to transition from a middle-income nation to a middle-class society.The middle class is an engine of economic growth and promotes social cohesion.The ‘aspirational group’ that’s neither poor or vulnerable, but has yet to join the middle class now makes up the majority (51%) of Malaysian society.It is largely urban and is comprised of smaller families. Their material asset ownership is similar to that of the middle-class.They lack post-secondary education: only 16%, compared to 55% of the middle/upper-class.Raising the aspirational group to the middle class will require helping them get jobs that earn “middle-class wages” and build up savings.Post-secondary education is the pathway for the aspirational class to join the middle class:Closing the existing large gaps in educational achievement at the post-secondary level will improve opportunities for higher-paying jobs.Education subsidies are not enough. Long-term factors, such as parents’ education level, account for most of educational achievement gaps.The government can further increase the pre-primary enrolment rate and raise the quality of the lowest performing schools.For those who are already in the work force, making skills development programs more demand-led by employers will help with the skills mismatch.Equity could be further enhanced by modernizing Government transfers, financed by more progressive taxes:Government programs have lifted 50,000 households from poverty, but fewer, better targeted and more generous program would have an even greater impact without additional resources.73% of the aspirational group have some form of financial assets (88% of middle-/high-income households) but average values are low and inadequate to support a middle-class life into retirement.The Government could consider making matching contributions to retirement account of some of the aspirational group to boost their balances.These could be financed through more progressive personal income taxes, namely considering higher rates for top earners and enlarging the number of tax payers. Show Less -

Key findings:• The Land Transparency Study used a novel approach of measuring actual provision of information against the requirements of the law by direct observation online and on-... Show More +site. The study explored the provision of land information in 63 provinces, 126 districts and 321 communes sampled, as well as in websites of all provinces in late 2013 and early 2014.• An index of accessibility to online mandatory land information and another of on-site mandatory land information at the province level were constructed for all 63 provinces.• Compared with 2010, there have been gradual improvements in many respects. More information is being made available and it is more accessible. Improvements were found at the province, district, and commune levels, and on the province websites.• Although these improvements are impressive, actual provision of land-related information still falls short of the legal requirements.• In essence, the problems with transparency came down to attitude, capacity and leadership at the responsible local government agencies. These factors often feed on each other.• In many instances, officials simply refused to provide information, requesting approval of leaders, citing information as ‘confidential’, or asking for introduction letters. At the commune level, responsible officials are often unavailable during working hours and documents are not properly archived.What can be done to improve transparency of land related information?• The study provides each and every province with a customized report, which is a check list of regulations for land information disclosure, and how the province can improve its performance.• The study also gathers good land information disclosure practices in a Good Practice Note, so that provinces, districts and communes can learn from each other. For example, Thua Thien Hue has a special portal for land related information, and the Department of Architecture and Planning of Ho Chi Minh City has a special room display for urban planning schemes, maps and models.• A better framework for transparency by putting the Law on Access to Information in place can improve openness and transparency by institutionalizing the right to information. Show Less -

Key Findings:• Early signs show that Vietnam’s economic recovery is on track. GDP growth picked up to a relatively brisk 6.2 %(y-o-y) in the third quarter of 2014, contributing to an... Show More + overall growth rate of 5.6% for the first nine months of the year.• Continued macroeconomic stability has helped underpin growth in Vietnam. It has contributed to the country’s improved sovereign risk ratings which enabled government bonds to be issued on international capital markets, raising US$1 billion on relatively favorable terms.• Government revenue increased by 17% in the first nine months of this year, compared to the same period last year. At the same time, total expenditure rose by 11.5%, due largely to recurrent spending. While Vietnam is still considered at low risk of debt distress, overall public debt levels are becoming an increasing concern.• Credit growth continues to come in below expectation, hampering the authorities’ efforts to carry out credit expansion to support economic growth.• Underlying the broad patterns of recovery, the performances of foreign-invested and domestic firms have been dichotomous. The foreign-invested sector continues to be a significant source of growth, while the performance of the domestic private sector has been more mixed, with rising number of domestic businesses have been closing or suspending operations.• The Government has taken some important measures in 2014 to improve business conditions which are expected to bear fruit from next year. This includes a resolution to shorten the time for administrative procedures for filing taxes, reduce administrative costs, and strengthen the transparency and accountability of state administrative agencies. The revised Law on Bankruptcy, the Enterprise Law and the Investment Law, are expected to improve corporate governance in enterprises and State Owned Enterprises (SOEs).• Despite a pick-up in momentum, SOE reforms are lagging behind planned targets. The Government has articulated a clear policy vision on SOE reforms, but more consistent implementation will be the key.• Medium term projections reflect continued modest GDP growth and further consolidation of macroeconomic stability. The Government’s continued commitment to fiscal consolidation and debt reduction is reassuring. Critical to this will be improved revenue collection, better controls on recurrent expenditures, and improving the efficiency of public investment.• The weak performance of the financial sector is due to a complex array of institutional and regulatory factors. These factors have included episodes of interference by central and local authorities on the investment and credit decisions of state owned enterprises (SOEs) and state owned commercial banks; inadequate governance structure and risk management capacity in these institutions; connected lending in several joint-stock banks; weaknesses in financial infrastructure, including poor financial reporting standards; and deficiencies in financial regulation and supervision. The government has announced a comprehensive reform program designed to address these problems and resolve the bad debts in the system. Accelerating the reform program remains a priority. Show Less -

Xem bản Tiếng ViệtNovember 24, 2014A CityStrength Diagnostic was conducted in Can Tho, Vietnam in June 2014 at the request of the city. A team of specialists from the World Bank Group worked with loca... Show More +l officials, technical staff, and stakeholders to identify priorities for investment and appropriate areas for action to help build resilience in Can Tho. The Diagnostic found that Can Tho can address the two primary threats to its socio-economic development goals—flooding and uncontrolled urbanization—by more proactively guiding urban growth to areas with lower flood risk, including the higher elevation areas near the heart of the city.The following actions and investments could have a transformational impact on the resilience of the city as a collection of initiatives implemented by Can Tho with more effectively coordinated support from development partners. Priority actions include:Strengthen institutional capacity and legislative frameworks for an effective, integrated flood risk management approach.Enhance the collection, sharing, and use of data on public assets, buildings, population, and risks.Improve the analysis of climate impacts in Can Tho by introducing standardized damage and loss assessment procedures that will enable local officials to quantify the impact of flooding on the local economy and budget.Strengthen financial management to enhance the sustainability of infrastructure investments and strengthen capital investment planning to facilitate better prioritization, monitoring, and achievement of economic development goals. Priority investments include: Focus on implementing flood protection measures in the urban core to make it a more attractive and safe place to live and do business.Use transport investments to guide urban growth to higher elevation areas and meet the needs of a modernizing city.Invest in sanitation to protect public health and support the economic base of the city.Continue to focus on urban upgrading as a means of addressing encroachment on drainage canals and targeting support to poor and vulnerable groups in the city. The CityStrength Diagnostic is informing follow-on activities in Can Tho. The Bank is preparing a new urban resilience project, an open data initiative, and a study of logistics and the role of Can Tho in the regional economy. Show Less -

RecommendationsA good diagnostic assessment of the actual situation is needed in order to differentiate harmful volatility from normal price volatility. Due to the seasonal nature of rice production a... Show More +nd the volatile nature of the world market for rice, some volatility is inherent in agricultural markets.Price volatility in Myanmar can be reduced to an extent only. International experience shows that a trade-off between lowering price volatility with short-term price stabilization measures and maintaining price competitiveness. This is critical for Myanmar in order for it to become a large rice exporter.Short-term price stabilization measures (such as export restrictions, minimum farm prices, and government-owned rice stocks) often have adverse economic effects and should be avoided.Lasting price volatility reduction requires changes in farming practices to spread production and harvesting more evenly throughout the marketing year. This will, in turn, depend on farmers’ improved access to irrigation, availability of seeds with different harvesting periods and growth durations, and farm advice on production technologies.Lower costs of doing business and improved access to finance for rice mill owners and traders can also help. These will reduce storage costs and increase private stocks, which will smooth price fluctuations. This could be facilitated by opening the sector to foreign direct investments.Modernized rice mills are better positioned to increase the private stocks and trigger productivity and quality improvements at the farm level.Investments in rural roads and telecommunication will improve rice market transparency because information will be able to pass more quickly from one market to another.Accurate market information on production, consumption, export and prices will help produce rational decisions and stabilize prices in a market-friendly manner.Expanding exports to additional markets – both geographically and by quality – will contribute to lowering price volatility. This will require a continuation of open trade policy, investments in infrastructure and ports, and less costly export procedures. Show Less -

Report No. 2, June 2013Turn Down the Heat: Climate Extremes, Regional Impacts, and the Case for ResilienceThe second report in the Turn Down the Heat series examines the likely impacts on th... Show More +ree regions if the world warms by 2°C over pre-industrial times by mid-century and continues to become 4°C warmer by 2100 — the expected trajectory if countries don't take action to lower greenhouse gas emissions. The report looks across Sub-Saharan Africa, South Asia, and South East Asia, revealing how rising global temperatures are increasingly threatening the health and livelihoods of their most vulnerable populations. It describes the risks to agriculture and food security in Sub-Saharan Africa; rise in sea-level and devastation of coastal areas in South East Asia; and fluctuating rain patterns and food production impacts in South Asia. ReportTurn Down the Heat: Climate Extremes, Regional Impacts, and the Case for ResilienceExecutive Summary in English, Arabic, Chinese, French, Russian, SpanishRegional Summary in English, Arabic, Chinese, French, Russian, SpanishOp-EdEnding Poverty Includes Tackling Climate ChangePress release Warmer World Will Keep Millions of People Trapped in Poverty, Says New ReportFeatureWhat Climate Change Means for Africa, Asia and the Coastal PoorInfographicWhat Climate Change Means for Africa and AsiaMultimediaClimate Change in Africa Will Hit the Poor the HardestWorld Bank: Warmer World Will Trap Millions in Poverty - Interview with President Jim Yong KimBlogsWe Must Confront Climate Change to End Poverty, by Jim Kim New Climate Report Emphasizes UrgencyWhy a 4-Degrees World Won't Cause Just One Water CrisisFilipinos, How are You Adapting to Climate Change? You Ask, We Answer Show Less -

Growth in China continued to slow in 2014, reflecting policy steps to put economic growth on a more sustainable footing.Policy efforts to tighten credit growth, reduce excess capacity, internalize the... Show More + cost of industrial pollution, and harden budget constraints of local governments accelerated in 2014.Targeted support measures and the recovery of external demand have limited the growth slowdown, but pressures from the weak housing market remain a significant drag on domestic economic activity.The real estate sector, an important engine of growth of recent years, continues to adjust to policies to tighten credit and reduce supply mismatches.The growth forecast for 2014 has been revised downward to 7.4 percent, still meeting the government’s indicative growth target of about 7.5 percent.For 2015–16 average growth is expected to ease to slightly above 7 percent as policy efforts to place the economy on a more sustainable growth path are likely to intensify.The government’s indicative growth number for 2015 will signal the priority that the authorities put on growth and reforms.The current emphasis on meeting short-term growth targets will make it more challenging to implement the policies necessary to shift growth to a more sustainable medium-term path.In an uncertain global economic environment, China’s sizable policy buffers could be reserved to maintain overall macroeconomic stability in case of unexpected domestic or external economic shocks.China’s key medium-term policy challenge remains implementing reforms that support China’s next transformation toward more efficient, equitable, and sustainable growth.A comprehensive reform plan was introduced to put China’s public finances on a more stable footing.Revisions in the budget law provide far greater transparency and accountability for local government debt management.Reform plans were announced to make gradual adjustments to the hukou system to integrate migrants into urban life.Implementing reforms can accelerate China’s economic growth potential, but it will not reverse a moderation of growth over the next decade.Without policy action, the slowdown in China’s potential growth in the medium term could be more severe. Show Less -

A follow up to the Climate Expenditure and Institutional Review ContextThe Government is committed to addressing the climate change challenge in the Philippines which is here to stay and will onl... Show More +y intensify in the next few decades. It is an overarching issue that poses challenges and presents opportunities for attaining inclusive growth, shared prosperity and alleviating poverty in the Philippines.• As one of the world’s most vulnerable country to extreme weather events and sea level rise, the Philippines is already feeling the impacts of climate change. Regionally, 16 provinces of the Philippines are considered among the top 50 most vulnerable regions in Southeast Asia (Yusuf & Francisco 2010). The urban poor in informal settlements account for 45 percent of the total Philippines’ urban population, and are particularly vulnerable to floods associated with intensified storm surges and sea-level rise (World Bank 2013, and four cities (San Jose Manila, Roxas, and Cataboato) were listed among the top 10 most vulnerable cities to climate-related impacts (Dasgupta et al. 2009). About 70 percent of the 1,500 municipalities located along the coast are vulnerable to these added climate risks (GFDRR). • Public and private investments in development practices to increase climate resilience protect against present risks and provide socio-economic and environmental benefits while offsetting future impacts. Investing in low carbon growth may increase the competitive advantage of the Philippines and set the country on a more sustainable green growth path. Climate action especially in the fields of agriculture, infrastructure, and energy can create employment opportunities.Recognizing the critical and complex short- to long-term challenges and opportunities posed by climate change, the Philippines has demonstrated leadership with its strong commitment to a comprehensive climate change reform agenda.• The Government is implementing the short- and medium term actions under the National Climate Change Action Plan (NCCAP), including the completion of adaptation/disaster risk reduction enhanced provincial plans. It has also formulated guidelines on mainstreaming adaptation/disaster risk reduction in land use plans to guide action at all levels. • The Government has also enacted complementary sectoral policies and programs including the ongoing strengthening of building and infrastructure standards, the adoption of the building back better approach and promotion of energy efficiency and renewable energy standards to deepen the climate response. • The Government has enacted institutional reforms including the establishment of the Climate Change Commission in to lead on policy development and to coordinate, monitor and evaluate climate response and the Cabinet Cluster that is focused on increasing convergence and coordination. Further progress is being made: The Government is now scaling up climate financing by leveraging the domestic budget to effectively implement and deliver its climate change reform agenda, and paving the way for a broad, strong financing strategy. • The Philippines is consolidating the reforms and setting the stage for scaling up action, including by building on the recommendations of the Climate Public Expenditure and Institutional Review (CPEIR) launched in June 2013.• The CPEIR recommends scaling up climate action guided by three pillars: (i) Strengthening the planning, execution and financing framework for climate change, (ii) Enhancing leadership and accountability through monitoring, evaluation, and reviews of policies and activities; and (iii) Building capacity and managing change.• Four Oversight Agencies Climate Change Commission (CCC), Department of Budget and Management (DBM), National Economic and Development Authority (NEDA), and the Department of Finance (DOF)] are initiating reforms aimed at (i) enhancing planning, prioritization, design, and reporting of climate programs, activities and projects to improve their effectiveness and support higher levels of financing, and (ii) establishing the enabling environment by completing and implementing the reforms begun with the Climate Change Act.• The World Bank, with additional support from the Australian Government (Department of Foreign Affairs and Trade through the Australia-World Bank Philippines Development Trust Fund), is providing technical assistance to the government in developing and implementing these reforms and in fully institutionalizing them over the next two yearsKey Results and AchievementsIn particular, National Government Agencies (NGAs) have further prioritized climate change expenditures in their 2015 budget proposals resulting in a continued increase of the climate budget of the Government.• DBM and CCC have led the development and adoption through a Joint Circular linked to the Budget Call of a standardized framework for use in the planning, budgeting, monitoring and reporting of public CC expenditures. The DBM and the CCC established the common framework for Climate Change Expenditure Tagging (CCET) across government consisting of policy-based definitions of CC response aligned with the NCCAP including a common method for tagging CC expenditures focused on accountability and the assignment of roles and responsibilities to Agencies.• 53 National Government Agencies have prioritized and tagged their budget proposals for climate change spending using common guidelines and typology. About 5% of the 2015 Agency-proposed allocation responds to climate change, with about 98 % directed towards adaptation, in line with NCCAP priorities. The largesse expenditures are for flood control protection.• For the first time, the national government’s Technical Budget Hearings have explicitly begun discussions on climate change prioritization in Agency budget proposal submissions. These discussions have established a policy dialogue between the CCC, the DBM and the national government agencies that can help catalyze the inclusion of indicators to monitor climate change results and objectives.The Government has also leveraged the Program Budget Approach (PBA) formulated by the Cabinet Cluster on Climate Change to submit a program that constitutes a major part of the overall climate change expenditure.• The proposed 2015 program under the Cabinet Cluster on Climate Change PBA consisted of about 4% (PHP 107.3 Billion) of the total 2015 national budget. The Government has scaled up this PBA by fivefold between 2013-2015.The 2015 PBA was formulated through an inter-Agency coordination process aimed at strengthening its coherence, targeting and convergence. The President’s Budget Message of 2015 highlighted the increased funding through the PBA and the government’s ability to more effectively monitor and account for climate spending using the climate expenditure tagging system. • The Program Budget Approach provides an opportunity to strengthen and scale up Government Climate Response. It incentivizes coordination and convergence among National Government Agencies (NGAs) in the planning, budgeting and implementation of priority programs by focusing the available fiscal space on them. Over 80 percent of the 2015 PBA is focused on addressing climate risks. It accounts for about half of the climate expenditures in the national budget. The Government (DBM, CCC, and DILG) has also set in motion the piloting of the CC Expenditure Tagging (CCET) at the Local Government Unit (LGU) level for the FY2015 budget. • The DBM issued Local Budget Memorandum 68 encouraging LGUs to tag climate expenditures in their Annual Investment Plans. The Joint Memorandum Circular 2014-01 (co-signed by DBM, CCC, and DILG) includes guidelines and CC typology adapted from the national CCET. Consistent approaches for tagging at national and local levels facilitate a comprehensive national assessment of climate response and gaps across all sources of budget financing. • The CCET LGU Pilot in FY2015 is designed to prepare a roadmap for scaling up CCET to all LGUs for the FY 2016 budget. 42 Local Government Units have been trained to tag their 2015 Annual Investment Plans.• LGUs and the League of Local Governments have been fully supportive and engaged in the piloting and adoption of the CCET system. Champion LGUs acknowledge the importance of CCET, support piloting the system with their 2015 Annual Investment Plans, and have expressed willingness to champion its scale up in 2016 through examples of how they have integrated CCET into their budgeting processes. This work will build the business case for LGUs to access finance from the recently Government created People’s Survival Fund that supports communities and local governments to adapt to the impacts of climate change.Moving ForwardThere is a vision and a sustained Government commitment to move forward. The focus of the reform effort on budget mobilization to address climate risks will shift to further institutionalize the process and tools by 2016, and deepen the quality of the planning, prioritization, funding gaps assessments process in order to mobilize the entire budget cycle to more effectively develop and execute the national climate response.• The tools and processes developed for the 2015 budget cycle have provided early indications for the need and utility of these reforms in support of the improvement of the planning, prioritization, budgeting and reporting of the government climate response. Much of the initial effort has been focused on tagging climate change expenditures to establish a common baseline data and to initiate a more strategic discussion on prioritization and on addressing gaps. • During the preparation of the budget year 2016, the Government will focus on building tools and processes through a sustained and expanded effort to use a climate lens during the Government’s planning and prioritization processes. This will also include building upon the lessons learned during the 2015 budget process to strengthen the tagging and tracking of climate change spending for the 2016 budget year to strengthen the processes for tracking, monitoring, and reporting the expenditures together with the results they are delivering. Show Less -

Highlight:Although the usual drivers of growth remain, their relative weight has changed. Garments continue to be Cambodia’s key engine of growth, while construction overtook the decelerating tourism ... Show More +and crops sectors as the second most important growth driver.This year’s continued healthy economic growth is underpinned by stable external sector performance on the back of rising FDI inflows that help largely finance a slightly widened current account deficit contributing to an increase in international reserves.Though there has been a slight increase in inflation, price stability remains within acceptable levels fostering economic expansion and supporting poverty reduction.Private sector deposit growth has picked up swiftly thanks to renewed confidence on the economy, contributing to greater stability in the banking sector.Fiscal performance has been further strengthened thanks to improved revenue administration; providing additional financing to support rising essential public spending without undermining macroeconomic stability.Cambodia has joined the Olympians of growth. Cambodia has grown at a yearly average growth rate of 7.7 percent for two decades now making it the sixth fastest growing country in the world over that period. Cambodia’s high growth is all the more impressive because of its resilience - it has maintained a fairly constant growth over the period. This sets Cambodia apart from countries such as Equatorial Guinea, Liberia, Angola and Cape Verde that are among the top 5 fastest growing countries over the past 20 years but have not experienced such constant growth. It places Cambodia among a group of eight countries, the “Olympians of growth” with fast and resilient growth. Other regional countries in this select group are China, Lao PDR and Vietnam.Outlook:The outlook for growth appears promising with renewed domestic political stability, strengthened recovery in the United States (US), and returning stability in Thailand all supporting GDP growth to reach 7.5 percent in 2015, similar to that of 2013.However, there are downside risks to forecast growth: potential renewed labor unrest, rainy season floods, the further dampening of rice prices and potential regional political uncertainty.Emerging challenges and recommendations:How can Cambodia maintain and boost economic growth and reduce poverty further? The key challenge will be to stimulate the agricultural and tourism sectors once again:Rice production growth has decelerated since 2012 and given the land area constraint, its recovery will depend from now on more on increases in rice productivity and quality than on area expansion. In addition, improving rice milling and logistics costs will help Cambodia get closer to its one million rice milled export target.Improved road transportation, together with greater coordination of efforts between central and local governments, the private sector and local communities, would help promote diversification of tourist destinations beyond the Angkor Archeological Park to include beach areas and ecotourism.Facilitating the growth of the manufacturing sector will also be instrumental to maintain and boost economic growth. The forthcoming Investment Climate Assessment indicates that the key constraints for firms continue to be electricity cost and access, informal payments and uncompetitive practices. Special Economic Zones (SEZ), which were meant to provide an improved business environment, are not yet delivering the benefits expected by foreign investors. The present growth presents an opportunity to improve the business environment by addressing the high cost of electricity with transparent solicitation; continuing the automation of business processes; improving trade facilitation; increasing the attractiveness of SEZs; completing competition and investment laws that enhance the investment climate; and simplifying business registration. To help attract additional foreign investment relocating from more advanced economies in the region it is also important to maintain political stability and to reach a conclusive and transparent process in tripartite minimum wage negotiations for the garment sector.Safeguarding stability in the financial sector through enhanced banking supervision will help prevent a bubble in the construction and real estate sectors.More broadly, increasing capital investment, deepening structural reforms, and improving formal and vocational education will help Cambodia return to a higher growth path.The development of very specific reform agendas with targets linked to priority reforms and a strong monitoring framework would help enhance the effectiveness of government implementation. Show Less -

Key findingsAchievements: • Vietnam has made significant progress towards achieving universal coverage (UC). Rapid progress has been made in increasing enrollment rates and budgetary resources.• ... Show More +The Government of Vietnam has also invested substantially in hospitals, health centers, etc. and human resources for health in recent years. Show Less -

Prospects and Risks• Given the slow start in Q1 2014, weaker government spending in Q2 2014, and monetary policy tightening, baseline growth projections are being revised downwards from 6.6 to 6.... Show More +4 % for 2014 and from 6.9 to 6.7 % for 2015. Strong domestic demand would continue to drive overall growth. Private consumption is expected to contribute more than half of GDP growth, supported by strong inflow of remittances. Ongoing and recently awarded public-private partnership projects equivalent to around 1.5 % of GDP are also new sources of growth. Finally, an acceleration of reconstruction spending can support growth at above 6 %.• A number of external and domestic factors could pose risks to growth. External risks could come from disorderly policy normalization in high-income countries, a disorderly adjustment in China’s property market, political tensions in the Middle East and Eastern Europe, and territorial disputes in the region. On the domestic side, the main sources of risk are slow reconstruction spending and domestic reform lags, in particular reforms to raise tax revenues needed to raise infrastructure and social services spending.Medium term reform agenda• In the medium-term, growth can be sustained and made more inclusive by pursuing structural reforms and investing more in human and physical capital. Key structural reforms include protecting property rights, promoting more competition, and simplifying regulations. These are discussed in the recently launched Philippine Development Report “Creating More and Better Jobs.”• The government’s planned doubling of infrastructure spending to 5 % of GDP, as well as significant increases in health and education spending, requires new sources of revenues. This can be achieved through a package of tax policy and administrative reforms. There is scope to increase tax revenues by broadening the base to making the tax system simpler, more efficient, and more equitable, while simultaneously lowering certain tax rates to increase the political feasibility of such a package.• The Aquino Administration has successfully raised tax effort by 1.2 percentage points of GDP in the last 3 years through the sin tax reform, improved tax administration, and higher growth. Accelerating the current reform momentum would help the country yield additional tax revenues to create the fiscal space needed to enhance growth in the coming years.• These reforms can help the country become more competitive, and in the process create more and better jobs, and accelerate poverty reduction. With further economic reforms, especially in areas which will have more impact on the lives of the poor, the government can help put the country on an irreversible path of inclusive growth and meet the jobs challenge. Show Less -

The Stories of Impact series highlights work involving the Global Facility for Disaster Reduction and Recovery (GFDRR) that has helped to reduce developing countries' vulnerability to natura... Show More +l hazards and build communities' resilience.Weathering Future Storms in the SeychellesA damage and loss assessment supported by the World Bank Group and managed by GFDRR led to the development of multi-risk mapping and an extensive review of flood risk financing options for the Indian Ocean nation as it recovered from a cyclone. Read moreDisaster Planning Pays Off in Odisha, IndiaEffective disaster risk management significantly reduced casualties from Cyclone Phailin, and GFDRR and other partners are supporting the strengthening and scaling up of these efforts through the National Cyclone Risk Mitigation Project (NCRMP).Read moreBuilding Back Better in Tonga after Cyclone IanField assessments after Cyclone Ian revealed that properly designed and constructed housing infrastructure prevented more deaths, injuries, and physical damage. That led to a Housing Recovery and Reconstruction policy in Tonga. Read moreProtecting School Infrastructure Against Earthquake Risks in PeruThe World Bank, GFDRR and the Government of Peru have been working through the Probabilistic Risk Assessment (CAPRA) Program to promote the application of risk-related data for better informed decision making. Read moreResilient Recovery in Samoa After Cyclone EvanAn assessment of the socio-economic damage from Cyclone Evan helped mobilize grants that are working to repair and strengthen facilities and road infrastructure and build resilience in public financial management to future shocks. Read moreStakeholders Engage to Build Belize's Climate ResilienceFacing the risk of climate-related disasters, Belize is working to improve its resilience by transforming the country’s approach to economic and social development with a national plan that cuts across all sectors. Read moreManaging Drought, Sustaining Growth in DjiboutiDjibouti is at particular risk for water shortages and severe flooding, both of which profoundly impact its growing but fragile economic sector. GFDRR is helping the country build resilience. Read moreEnhancing Seismic Preparedness in IstanbulA disaster preparedness program supported by the World Bank Group and the Global Facility for Disaster Reduction and Recovery has helped earthquake-vulnerable Istanbul retrofit or rebuild over 1,000 public buildings. Read moreRapidly Assessing Flood Damage in Uttarakhand, IndiaGFDRR and partners conducted a Joint Rapid Damage Needs Assessment (JRDNA) for the Uttarakhand region soon after the devastating 2013 monsoons, completing a thorough analysis of damage and providing the necessary foundation for recovery efforts to begin. Read moreAssessing Post-Disaster Needs in NigeriaAfter severe flooding in 2012, Nigeria asked GFDRR and other key partners to conduct a comprehensive Post-Disaster Needs Assessment (PDNA). Read moreCommunity-Based Disaster Risk Reduction in NigerGFDRR and partners have financed an almost $1 million disaster risk reduction project in Niger to build capacity of local communities for early warning and response. Read moreStrengthening Financial Resilience in the PacificIn response to requests from 15 countries, the World Bank, GFDRR, and other partners formed the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) in 2007 to help mitigate disaster and climate change risk. Read moreDisaster-Proofing the Transport Sector in VietnamThe government of Vietnam, with support from GFDRR and the World Bank, has made important strides in building the resilience of the transport sector against risk from natural disasters and climate change. Read more Show Less -

Unemployment continued its slow downward trend, while gross domestic product (GDP) growth rates continued to hover around 3.5 percent during the third quarter of 2013. Real wage growth ... Show More +took a small hit, declining to about 3 percent—a rate onethird lower than that recorded in the third quarter of 2012. Driven largely by the increase in Eastern Europe and Central Asia, employment growth showed improvement, but remained below the growth rates registered in 2011 and most of 2012. Overall, by the third quarter of 2013, GDP growth and employment outcomes showed few signs of returning to 2011 levels. Show Less -

KEY FINDINGSMalaysia's economy is expected to grow by 5.4% in 2014 and 4.6% in 2015. The outlook for 2014 and 2015 will benefit from better conditions in advanced economies.Higher employment levels an... Show More +d the full implementation of minimum wages (RM 900 in peninsular Malaysia and RM 800 in Sabah and Sarawak) suggest higher labor incomes in the economy.Exports rose in the previous two quarters and lifted Malaysia’s economic growth.About 60% of goods and services produced in Malaysia are ultimately consumed abroad, highlighting the benefits of boosting trade competitiveness.Exports of services, such as those in health, education, and oil and gas, in Malaysia have a huge potential.In manufacturing, Malaysia can do more in the higher-value added tasks, like design, research and development.More training is needed to address the apparent mismatch between the skills produced by the education system and those demanded in the labor markets.Universities and Malaysian firms can drive innovation and growth by working together to improve student skills in communication, problem-solving, and information technologies.Regulations that affect the ability of firms to access foreign markets rules mostly have valid policy objectives. However, some regulations limit trade. It’s important to strike the right balance so that regulations are fair and also encourage competition to offer consumers the widest possible choice and the best value.As ASEAN Chair in 2015, Malaysia can encourage other member countries to advance the trade and competitiveness agenda. For instance, Malaysia can urge other countries to take “mutual recognition agreements” (MRAs). These MRAs will allow Malaysian professionals to export their services elsewhere, and they will also allow other countries to export their services to Malaysia. Show Less -